After our story last week about Barrett-Jackson introducing a reserve at their Palm Beach auction, we had a lively and – thank you – largely constructive debate on the merits of the reserve and no-reserve formats. Not surprisingly, Barrett-Jackson has been having a long internal discussion on this, too, and we talked with Craig Jackson on Friday to get his thoughts. You can call Craig many things, and you’d be hard pressed to come up with one he hasn’t heard before, but never say he isn’t a car guy at heart. Craig’s been buying and selling his personal cars for a long time now, so he’s been on both sides of the fence.

Their decision to introduce a reserve comes from two factors: One, serving consignors of valuable cars who want some protection; and two, attracting a new class of of cars.

While Barrett-Jackson has offered reserves historically, it was many years ago and the idea didn’t really come back until this winter: “I spent a lot of time in Palm Beach talking with customers, and I spent a lot of time in Scottsdale talking with customers, and that’s what led to us doing this,” said Craig. “If you don’t listen to your customers, you’re doomed.”

He said that specifically there were Scottsdale regulars who asked about the possibility of attracting more high-end lots to the sale: “There were certain cars they wanted and they love Barrett-Jackson, they didn’t want to go to a ‘boring catalog auction’ – and that’s a quote – but I didn’t have the inventory they wanted,” he said.

Their first issue was figuring out eligibility for reserve: “We’re putting the price level at different amounts at different auctions, because we get different amounts of cars at different price levels at different venues,” Craig said. At Palm Beach, the floor for a reserve was $50,000; Orange County will be $200,000, Las Vegas $250,000 and Scottsdale 2012 $500,000.

The problem you run into is if you have numerous cars of the same type, and some are at reserve and some are at no reserve. What we noticed in Palm Beach was that the no-reserve cars did better than the reserve cars. (They also saw reserves pulled from cars entered with them, as bidding activity was clearly hotter on the no reserve cars. – ed.) And this is something I’ve watched time and time again, especially in catalog auctions where they put the bracket of the prices – well, everybody knows the low bracket is the reserve and really, once the car hits the reserve, does the bidding go much higher? Because everybody knows that’s where they can buy the car at.

I’ve been on both sides of this discussion internally here, but when you watch it play out in the auction arena, the excitement is when the cars are no reserve, that’s when the bidding activity is fierce. On the reserve cars, it’s a lot more sparse. I think that once you get into the higher level cars, then you have got guys that are gunning for a specific car, and it’s not going to be as much an impulse purchase. That doesn’t mean that it’s set in stone; in Scottsdale it’s up to $500,000 but we may take a car at a reserve a little under that if it’s the only one there is, or the only one for sale in the marketplace and we think it’s achievable.

In Scottsdale, if we got Amos Minter selling his T-Birds at no reserve and they’re $100,000 cars; and a guy wants to put in a different T-Bird with a $100,000 reserve, that just isn’t going to work. So you’ve got to raise the bar higher and meet people’s expectations when you’re selling the car, and also do the best job you can for them.

Where we don’t think it’s fair is if you start picking and choosing, where you have 10 of the same cars, but these two are going to have reserves and these eight don’t. It confuses people, and a little bit of confusion did happen in Palm Beach… we’re trying to learn from it, listen to our customers, and adapt.

What we did not do in Palm Beach is run it like a lot of other guys, where you’re just running the car – that just creates a lot of bad will. What we were trying to do there was keep the car on the money; and once we passed the reserve we did not announce it, we just kept the bidding going. Otherwise, a lot of guys will sandbag, they’ll wait until you hear the car is loose and selling and then they’ll jump in. If you don’t give them that opportunity, they had to jump in earlier because they never know where it’s going to end.

The other thing that I want people to know is, whether its reserve or no reserve, our process for consigning the cars has always been the same. And we have a pretty good idea going in what the cars will bring, and what they’re worth. Now, it takes multiple bidders to get there, but at Palm Beach we had north of 1,000 bidders and in Scottsdale in a year we’ll have 3,500-4,000 registered bidders. You have enough buying power. On our computer screens that we run the auction from, and all through the consignment process, you’ll have what the consignor’s … dream price is; and then you’ll have what our value is. We are plus or minus within two percent of every auction on what we think the cars are worth – a pretty good average.

Now, if we would take the cars at the consignor’s dream price… if it’s reserve, it’s probably going to be a no-sale waiting to happen; and if it’s on a no-reserve, you’re going to have hard feelings. That’s why we have those conversations up front, and I think it’s a misconception that we’ll take any car at no reserve. That is not true, and in fact, at Palm Beach we turned down some no-reserve cars… We may alter this all again as time goes on, but right now this is where we feel comfortable.

As a result, there are already consignments for Scottsdale for next year, including “several” Gullwing Mercedes and a collection of “high-end classics and vintage race cars, very rare cars,” which will be announced soon. “For Orange County, we also have a multiple-platinum-winning Ferrari Daytona. We’re working on some other cars for Vegas – I want people to know they can go ahead and submit whatever you have. If you have a very rare car, talk to us and we can go through the process.”

“I still believe in no reserve, but as a car guy myself? If I was going to sell a 427 Cobra, would I want a reserve? Maybe… But if I’m going to sell any one of my regular cars, that I know there’s a big demand for, I know the car will bring more money no reserve. I’ve done it numerous times myself.”

How about his Bugatti? “I might, I’ve had five or six guys try to buy it from me. Would I sell a one-off Type 57C Bugatti no reserve? I’d have to know ahead of time that I had four or five guys who want the car. And that’s what we talk to people about when they’re consigning. I have guys who know what they want to buy, we just have to get the cars. So those guys out there with four-cams? Give me a call… We have some great cars.”

“I know I have the buyers. The consignors need to know that we will work with them on fair reserves for those cars.”

58 Responses to “Craig Jackson in his own words regarding the changes at Barrett-Jackson”

I still think that a hobbyist with say only one or a few cars may be better off with a reserve, since he doesn’t have the opportunity to make up any losses through another sale that may go “through the roof”.

Professionals or those with larger collections may be more tempted to roll the dice as they can afford to take the hit, if one does happen.

I could not take the chance at losing a big chunk of Junior’s college fund if the folks in the room just aren’t in a buying mood for my particular vehicle on that particular day.

It’s appropriate you mention Craig Jackson’s Bugatti in this article – I think it’s clearly apparent to any thoughtful observer, B-J got caught ‘chandelier bidding’ a no-reserve car so to save face, not to mention all sorts of legal expenses. Craig HAD to buy it. With a reserve, he wouldn’d be stuck now with a Bugatti they couldn’t sell, they could have just acknowledged that there were no interested bidders in the room at that particular time.

If you all recall the Bugati in question was “bought” by another bidder in Las Vegas (approx $700K) and later in the show, Mr. Cool with the Shades (Steve) and Craig has to announce to the audience that “due to some issue with the buyer, the car did not sell and Craig did not want to punish the consigner and therefore was buying the car himself, and therefore maintains the integrity of B-J”. Huh? How does someone bid $700k for a car then back out?! That is the bigger question. Anyhow, that is how Craig currently owns this expensive little toy.

The “Parade of Pigs” continues. The B-J Auction for the most part is a joke.- praying on individuals seeking their 15 minutes of fame in the last third of their life. Whether this is intentional or not the B-J management continues to leverage this psychology. It is apparant that the B-J circus is also in the last third of it’s life – just like American Chopper and other reality shows. Truth be told there is only a few folks who can really afford the stupid prices that the camera inflates as the regular guy bids against the Ron Pratt’s of the world. The pendulum swings both way and hopefully the hobby will normalize in my lifetime so we all can once again enjoy the hobby – not just watch it on TV.

I attended the B/J in Palm Beach, whatever it is, its a lot of fun, nice cars to see, plenty of food and booze.Not to mention a lot of beautiful women. You can spend the day and totally enjoy yourself for ten bucks admission for seniors. Yes, its a carnival atomosphere,but, I loved it.on the reserve, i would want it on my 1949 california black plate kustom ford. I have too much in it, not to. like the man said, you can always remove it.

I like to watch the auction,but I DVR it to skip thru all the crap&slow part’s.It’s in b/j’s best interest to get all the money they can for a car as they are getting a percentage of the money.look at the figure’s in the article,only 1000 bidder’s at Palm Beach.Number’s were down,4-5000 registerd bidder’s at scottsdale.Craig said thing’s were off by 20%.When I watched Mecum’s kansas city auction price’s seemed off.Dana wanted a consignor to drop the reserve,the seller said cut your commission.I’ve seen Dana do it on tv many time’s.This time he said”I can’t give away the company”.

Larry, I DVR the B-J auctions, too…for much the same reasons. But, for me, it’s to skip over the familiar: at this point, having watched B-J auctions on Speed for years, there’s not a whole lot more I care to hear about any Baby Bird, Tri-5 Chevy or Corvette of any vintage. Skipping over just those cars shortens the show by hours!

I really think these types of auctions where there is a bidding war on certain cars inflates these cars more than they are really worth. The average guy just can’t pay some of these prices due to rich end guys bidding on the cars. I like to watch the auctions but world never try and buy a car from them.

Iv’e met Craig several times, and have attended the Scottsdale events for the past 10 years. He’s honest, true to the hobby, and the hobbyist. Sure, he’s got alot on his plate, but no matter what the economy looks like, he’s always looking forward. Good call Craig!

I would not take a old lawn mower to B-J, rip off auction show.
The cost of doing business with these used car salesmen is insane. People wake up, there are real auctions that don’t screw everybody they meet.

Reserve issue is simple; If no reserve brings higher prices, then do it that way and if the price doesn’t go high enough for the seller, then he can just buy the car back himself. In that situation, B-J could compromise on the two commissions normally paid by a seller and buyer. Also, what’s with Steve Davis and his “shades”? What a dork.

I must say that I’ve been to Scottsdale twice. I didn’t buy anything because I was there to see the selling/buying atmosphere and therefor did not register as a buyer.I think that Jackson is a strong marketer, has a feel for where his prices resistances are, and will do fine for those who need to do business in that fashion. As for myself when I want to expand or contract the collection I would simply go to Hemmings and the car club whom the marque represents and sell the car. The basic rule here is: It’s worth what someone else will pay for it.

Having attended many Reserve Auctions, I can see how it takes the dealing on the Block out of the picture by going NO RESERVE, but fact is 75% of the car collectors can’t take the chance on giving 10% commision and then watch the car sell 20% under the money because the auction company got it . You just have well took your loss at home where you could cry in private. Take the sellers and buyers trading on cars in the $25,000 to 75,000 out of their sales out of the picture and see how long they last.

I would rather see a reserve if I was selling. And if I was buying I would never pay anyone a commission to buy a car. I would like to see buyers boycott the auctions until they drop the buyers commission. This is something that has just caught on the last serval years. It is just not good sence to pay some one to buy something.

Jim,
I am with you 100% on this one charging a buyer a commission. If it wasn’t for the buyer then they would be no sales. When you charge both buyers and sellers you are not just spliting the fees you are like a double edge sword charging twice.
It is just as easy to sell a 100,000.00 dollar car as a 10,000.00 car from the auctions stand point. But the 100,000.00 car brings in 10 times the fee’s.

You’re both right. This is putting a taint on BJ. What is also missing here is you even have to pay serious bucks jut to get your car on the block. So you pay for the chance that you may lose your keaster and get slapped with a commission just to add to your loss.

guys! all of this is well documented when you sign up to sell a car at this are any other auction. How can these fees be an issue if there is not attempt to hide them? The ultimate option is to NOT list your car for sale in an auction that does not have the terms you like.
I do not believe B-J hides anything or is trying to screw anybody…all fees, costs, etc are boldly mentioned up front!
I’ve sold a car last year at B-J in Scottsdale and I got a great price, they handled all the paperwork/title transfer, etc and got my money as promised….hummmm…seems pretty staight forward to me.

The B-J No Reserve tactic has been a HUGE farce for years and most of the regulars know it. B-J will swear up and down that if a seller doesn’t want to lose a car at too low a price point that fantasy bidding by one of their cronies up to an acceptable level doesn’t and can’t happen. If a vehicle is on any day but Friday or Saturday or is too late at night and you don’t have a friend that can fake bid your car up for you, you could end up hosed. The worst thing that can happen is that you end up buying your car back and paying both the buying fee and seller fee.
I know from bitter personal experience because at the worst time in my financial life I had to sell my collection off and figured that B-J would be the most likely place to get the biggest number. But, because I didn’t KNOW anyone, I took some Tuesday and Sunday numbers and my vehicles sold for less than one-third of what they were expected to. I figure that I lost over 100k going to Scottsdale and will never do business with them again. I met some great people there and had a great time but was admonished by most that I was crazy to not have someone buy my vehicle for me if it was going too cheap. In fact, one of my vehicles showed up at Mecum in Indiana a couple years later and had no problem bringing double what B-J brought. I think you can figure out what I think B-J stands for now……and it wasn’t a good one….

Hey Brent,Mecum is as much a fraud as B-J…not only does he run his own cars without announcing they are his (Dana). they (Dana and team) PRESSURE consigners to drop their reserve under the guise of “making the deal” (for the deal maker Dana).The other thing Mecum does is that he anounces when the reserve has been met…and typically all All of these auctions are a dog and pony show, but if you understand that, they are loads of fun and a great lesson too. Been to many B-J and Mecum auctions, and its all the same hustle.

Well, to me the hobby is unfortunately getting too much like politics. Forcing people to react (or not to react) to certain stimulus rather that letting the “market” determine price. All that does is artifically set price and create uncertainty in the hobby.

I like Barrett-Jackson because they (used to) let the sheet metal and the market set the price. Now they are going the way of all the other auction houses. Craig, please re-think your position. The average guy (like me) enjoys the fact that he just may get a bargain if he is attentive to and follows the marketplace and understands the hobby. .

There’s not many of us that can afford Ferrari Daytona’s or a 57C Bugatti and while we might find those million dollar + cars interesting, the majority of us out here are more interested on what we might be able to buy a classic Ford or Chevy for. I’ll bet we make up 95+ percent of your audience both on TV and at the auctions. Think about it!!! You’re going to loose your audience if you don’t

I don’t see why Hemmings Motor News, don’t just quit the B-J Blogs and sell its subscribers cars as space dictates.
The Futureliner, and Howard Huges car were enough to do me.
If Hemming is paid to do the Blogs, then do the Blogs and anounce Paid Ad.
These Blogs are written so one sided they are irratateing.
I’m not trying to be rude, its just my opinion.

Charles, while we accept Barrett-Jackson’s ads here at Hemmings, that fact has no influence at all on our independent editorial coverage of the collector car auction scene, and it never will. Church and state. You can look at our extensive auction coverage here and in the pages of our print magazines for proof of that. I am not easily offended, but I will take offense should anybody suggest that we are simply paid shills for any auction company here at Hemmings.

I dont understand the debate. If we have an auction here in Oz for houses etc the Reserve is not known and if the prices don’t get high enough it is “passed in” and maybe negotiations take place after the Auction or maybe not. Seems like a lot of good Hemmings space is being taken up on a Non-Issue. If the Reserve was stated then just bid to that – or not. If the Reserve is known how do you call that an Auction. I must be missing something here. Anyway seems like there are choices as to what you do with selling your car and you do what you want. I am tired of this go-nowhere debate.

Having the reserve prices made for a less interesting TV event. At the very least, at the end of each day, B-J & Speed need to do a re-cap on what those cars that did not sell on stage, were sold for on the field. That way both sellers and buyers will have a better picture of what the cars was really worth.

It appears to me that some are not realizing or acknowledging what the televised auctions have done for the industry. If you have a car or want a car, the number of potential buyers have exponentially increased due to the efforts of Barrett Jackson and Mecum. If you are an unwitting seller or unable to take the chance of not receiving what you “want” for your car, it may be better to sell them elsewhere. Market values change for these cars but few owners want to realize their market value decline. We need to acknowledge that the televised auctions have helped the values of all collector cars.

I agree. A lot of interested car buffs enjoy the viewing/renewing of cars gone by. Especially seniors. We may not be able to afford them but they do bring back memories. Buyer beware was always a moto.

Well my opinion on B-J and the like are as follows. I think they have done more to harm the hobby from the point of pricing out the average Joe looking for a project to work on. Here’s why I say that, some genius sees a 70 BOSS 302 go across the block over 100K he then goes to carlisle with a absolute bucket of junk that he swears is a genuine BOSS 302 sticks a $35K price tag on it when it would cost over 100K to make it a half decent car again. That car was worth scrap weight for the body and other parts ,I mean it was totally gone the engine which even if it was a original BOSS was missing nearly everything and then you’d have to hope the block wasn’t stuffed. B-J is the measuring stick these guys use to price things . It’s hard to find a decent car for under $35 K any more that doesn’t need a lot of work. There are some for sure ,which you’ll find are desperate sales due to divorce or loss of income.
Most of these auctions seem to be a ego stroking fest. For the buyer,seller and of course B-J with their 20% combined commission , 20% come on you greedy bastards that is steep. But for the chance to be on tv and win the p*ssing contest they’ll pay it. The guys I do feel a bit sorry for are those who are outsiders to the game. They take their car there, watch the bidding still active as they slam down the gavel while celebs have their cars live on the block trying milk every last dime. I saw one of Reggie Jackson’s car sit there for nearly 5 minutes . They were about to bring down the hammer and Reggie whispered in Craig’s ear and then they go into salesman mode, and preach the virtues of the car and milk another 10K for Reg.

The only reason someone gets caught up in the hype is to find a deal and make money from the next time the car is sold. I have been to these auctions and seen cars with 60-80 k invested sell for 20. You could not build a car for that price. The economy sucks and they need to be protected but 50K reserve? It only protects the most expensive autos. The whole thing is a joke, why but with all the sellers fees, there are plenty of cars to buy without paying a middleman. I have found Porche Speedsters for 3000, Antique LaSalles, Fords, Chevys, motorcycles and would not buy unless it was an underbid deal on a bad day.

Well I watched an absolutely pristine AMC AMX gor for $25,000 on some TV auction and “Bingo”, every 68-70 AMX is suddenly worth exactly $25,000. It’s just Magic! These examples usually have unheard of low mileage and condition and in no way represent what Joe car guy is trying to sell you.

Last I checked only one auction house hired a national accounting firm to audit it and share the results. And it wasn’t Mecum. Why? Because if they did, we’d see that Mecum runs its own cars through and doesn’t announce it, among other things.

Wonderful banter going back and forth here. Just remember, Barrett and Mecum are shear entertainment. I enjoy watching the circus atmosphere. As a true old car hobbyist, just thumb thru the pages in Hemmings and you will find wonderful, good condition cars at reasonable prices. You don’t need a Ferrari or Shelby to enjoy the hobby, friends and camaraderie.

well, well, now all you folks who are trashing B-J are not getting it.
I have attended numerous B-J auctions (as a bidder) here in Scottsdale. Yes, it’s a circus. Yes, it’s high dollar. Yes, it’s geared to the level of buyer most of us will never achieve. But….
if you know the game then why complain about it? It is a business, it is cleverly marketed and appeals to those who are comfortable with the setting, the pricing and the glitz that accompanies it! Come on now, it is NOT about the average buyer, it is NOT about us regular smucks that have a $30/40/50K car that we take to the weekly cruise-in (like me). It IS about the upper level of car buyers. The cars come to them all in one spot, no travelling around the country, no on-line hype, no doctored pictures, etc, etc.. It IS about convenience! The wealthy will pay for convenience. The wealthy will pay for the atmosphere, the perks and the ability to see all the cars they potentially want in one spot. Come on now, your jealously of this level of wealth is showing. Don’t blame B-J for filling the market for just these types of buyers! Geez, don’t you wish you had thought of it?!
Get over it people. It is the way it is! I love the auction, I love the atmosphere and if you go in to it with the understanding of just what it is….then it can be quite a fun time! Don’t expect B-J to dumb down the auction for us regular smucks, go with it and know it for what it is!

Mint Joe , the problem is these auctions take almost all cars out of the running for average guys. Hey I know I’ll never afford to own a Bugatti,Ferrari or a genuine cobra. I can afford a Mustang or camaro that hasn’t been B-J’d by a owner who thinks that is okay to ask that money for every car every time. Not every stang or whatever is worth 50K but people see the auction and the sale prices and believe that is what the market is. It just sucks that unless you deep pockets you can no longer play in this game even at the bottom.

XA351GT (from Mint Joe):
Exactly my point. It is not geared for us regular smucks! So be it…a car is only worth what a buyer is willing to pay for it….so if someone B-J’s a car and is asking too much….don’t buy it.
It is an artificial price ceiling and it it only a PERCEPTION.
I see it all the time, people say: “one just like it sold at B-J for $XXX and that is what I want….well, they can ask whatever they want, it is still the buyer that controls the market…NOT the seller.
I think most people think the opposite! remember…the one with the money controls the transaction!

Hey guys, If you don’t like how an auction house conducts business. Don’t buy or sell with them. If you don’t like auctions don’t go to them.

I don’t understand why anyone would buy a car at an auction when you can’t inspect it closely ( I have been at auctions trying to inspect a car when some arrogant security guard tells me that i cannot open that door because I might damage the car. ) Let alone drive it. Dosen’t anyone realize that most any peice of crap can limp across an auction block. ( or get pushed ) I prefer to buy from an established dealer who will let me drive the car and answer my questions.

But no its more fun to buy a car while calling your friends on a cell phone and saying hey look at me I’m on TV.

One more thing. How did Mike Joy become an expert on collector automobiles? Can anyone tell me that? That guy gets more facts wrong trying to sound important than your average politician.

Collector car Auctions DO provide many valuable services to the hobby.

They bring buyers and sellers together at a specific venue, with established dates, as well as provide liquidity for the collector car market.

While the market value of all assets will vary, at any given point in time, collector cars have been very stable. This is in large part due to “the auctions”.

There are advantages and disadvantages to any method when selling a special vehicle. You need to evaluate each method an see which has the best fit for you and your particular vehicle.

All vehicles which sell at auction do not set world record prices.

As with most auctions there will be high, medium and low prices set. To think that you can’t get a bargain at an auction is just not justified. If you watch the auctions you will see, buyer, collectors as well as licensed car dealers who are buying to resell for a profit.

The large auctions have become “Events” and can be a fun and exciting atmosphere.

There is generally a finite quantity of collector cars, so while that number is relatively constant, the world “market” continues to grow and expand.

The auctions who do the best to accommodate their customers will thrive.

In my opinion, the option as whether to sell with or without a reserve should be left up to the customer, 100% of the time.

It’s about time the Barrett Jackson people got their head out of the clouds and got real.
Who can afford to rebuild a car and go to somebody and have them say you can’t put a reserve on it? Most people can not lose $40,000 to $100,000 on a car.
At Mecum Auctions, Dana Mecum has always had a reserve and you can talk to the Mecums. You can pick up the phone and call Dana and he will give you good advice. I will never go to Barrett Jackson, even with a reserve. They’re to snooty. Dana, Frank and their staff are down to earth, nice people to deal with.
Curt Schultz

B-J sees the other auction houses making more money selling less cars with less overhead,…..,it cost alot of money to stage their event…….B-J’s mark of selling all hotrods and vettes for 100k is over….it was fun untill the world ended….now it is back to business…..the REAL cars are worth more,..translation, more commission…….I love their shows…..look forward to the next one

I attended Barrett Jackson Palm Beach plenty of great purchases at the auction.Plenty of great cars.A case of the little dog wanting to be the big dog and barking continuously aint gettin ya there.Basing your auction on musclecars today is risky business.You’ll find out running your own race works out better than trying to ride someone elses coat tails.The big dogs sittin in his front yard eatin his bone while the little dogs are runnin around the neighborhood yappin lookin to take someone elses bone..The little dogs still can’t figure out if they stay home they’ll get their own bone.